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11/3/2010 10:14AM

News Hub: The Fed's New Voyage -- QE2

The Fed is expected to announce a new plan, dubbed QE2, to stimulate the economy. Jon Hilsenrath, Neal Lipschutz and Donna Kardos Yesalavich discuss the likely size of the plan and what it can accomplish.

This transcript has been automatically generated and may not be 100% accurate.

Gou ... I first this morning is is exactly what these midterm elections before Wall Street you wonder whether gridlock is or isn't good has been tried over and over again they let this point and given that we're facing now what's likely to be Republicans who were standing by their guns in front of a stranger voters what they were elected and to do ... with that mean for small family issues we're facing right away ... X engine Bush tax cuts sentiment when benefits that kind of thing ... yet I mean you know you it gets even more confused Jerry I think because of the Texas folks will wind up session ... and not even the newly elected Congress ... you know ... it seems to be a coalesced around the view ... that ... we expect the tax cuts to be extended including for the wealthiest Americans at least for some period of time ... that seems to be the path of compromise I think that's the ... cut the coalesced in view when markets and among ... people in the in the financial industry NJA should expect any big moves and say Fannie Freddie financial reform these key issues that look like the Riverside area for grabs again well on the financial reform is up for grabs it might be might be taken with a little bit you're you're wise to raise Fannie Freddie that was the great and ... the finished piece of business on that front in the in the last Congress ... Congress can avoided it's can be very difficult to deal with in this polarized environment we've been talking about ... what he can really be avoided much is the decision on the Bush tax cuts can be avoided something has to be done last word goes to the south and Freddie I think also perhaps the makeup ... of the new Congress would allow for some perhaps more radical ideas ... of the Fannie Freddie and said to get some traction I he may be a complete privatisation ... of that as opposed to email government continued large Goldman role in the home mortgage it was his brothers Jerry A about to go last word for all discover sure they would say so far ... well you know if he was a historic night we shouldn't lose ... sight of the fact that this is the biggest change of seats in the house since nineteen forty six so he really does matter I Jerry side patron much ... once ... again about the market about the other big ... happening today the Federal Reserve meets at and we get their statement on interest rates on what people are calling quantitative easing Donna Kardos his element joins us now ... on set done before we get into this milk with our markets reacting so far to the prospect of Archie was happy with Mr. so far not much on and people had been expecting Republicans to wind down ... our in house ... asset that spring that's been priced in by this point and we have this rough percent rally that was in doubt over the past two months ... and and parted that has being because of this expectation so not too much surprise that we even had better than expected jobs data this morning from ATT to the dreaded private secretary they added that three three thousand jobs were expecting only twenty ... twenty thousand jobs to be ... an add ... on but still not much every action that does that just lately about thirteen fourteen points ... Dell is pretty flat and while that's because everybody sort of thing ... we have had ... them bring tunnel spread and now from Washington that I didn't and you know the big meeting later today and the big question is what ... I'm sorry Greg ... Greg you're still talking to me ... the Jhunjhunwala Rabbit was an expansion of Fed meeting later today ... well you know I think we're certainly going to go forward with quantitative easing program ... either probably to do something like ... five hundred billion over six months maybe a little bit less over shorter period of time in the year for three months ... the really big question is how they bring their decision going their decisions going forward ... how ... calm I hadn't they explained to the public whether they'll continue to buy ... Treasuries ... and under what circumstances the logical probably say something like that they're prepared ... to continue to purchase and then the question is ... did they tied to some kind of mass like God ... but what happens to inflation ... I think that's what a lot of people are looking for is the condition that they that they attached ... John was issued and ... the CMC BR we didn't hear them announce the size of a likely the deal incrementally meeting a hundred billion dollars in each meeting for an hour for the for the near term ... today we did today headline number for stocks one of the ideas that may be all say a hundred billion a month and then just leave it open ended I think that becomes a hard thing to manage and explained I think the only ... the ads on creates uncertainty for the market ... I think if the entity they're gonna play and it's really it's important to them ... it's been a lot of time trying to think through how they're going to explain what the euro today isn't so ... unusual ... I think it's it's easier for them to save five hundred over six months to fifty over three months ... and then Beazer's know there's a certain static condition doubled yet whether we keep going for ... the taking the time is it just got a lot the in the mail